Using equity to purchase an investment property

You may have equity in the current property you own that could potentially be used to take out another home loan.

What is equity?

Equity is the difference between what your home is worth and how much you owe on it.

Remember, your home could be worth more now than when you bought it. To find out if it is you can have an appraisal done on your home to find out its current value. If you use equity in your current house to buy a new property then the bank will most likely have to conduct a valuation on your house.

How you could use equity to purchase a new home: example

John’s home is worth $415,000. Because John owes $215,000 on his loan for this house it means he has $200,000 worth of equity. John could use this equity as part of a deposit on an investment property by talking to one of our home lending specialists.

To find out whether using equity from your existing property to buy another is right for you talk to one of our home lending specialists today – visit your local branch or phone 13 14 22.

Share this

5 property investment strategies

When investing in property you need to be clear with yourself on how you intend to make money from the investment. Here's 5 popular strategies.

Things you should know

*The information provided is intended as general information only. Articles have been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. You should consider obtaining personal investment, taxation and/or legal advice before making any decision. Please consider the Guide to Heritage Deposit Products and Guide to Heritage Credit Card Products(available in-branch, or at www.heritage.com.au) before you decide whether a product is right for you. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice.

Assistance

Talk to us

Follow us

Talk to us

Things you should know

*The information provided is intended as general information only. Articles have been prepared without taking into account your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situation or needs. You should consider obtaining personal investment, taxation and/or legal advice before making any decision. Please consider the Guide to Heritage Deposit Products and Guide to Heritage Credit Card Products(available in-branch, or at www.heritage.com.au) before you decide whether a product is right for you. All loans and credit cards are subject to application and approval. Conditions, criteria and fees apply and are subject to change without notice.;